Consistent Sum-Constrained Models

Bultez, Alain; Naert, Philippe A.

doi:10.2307/2285928

Cited by 35 publications

(17 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In this paper we referred to market share attraction models, because they have been frequently used in empirical work [see, e.g., Bultez and Naert (1975), Naert and Weverbergh (1981)], in theoretical research of economics, game theory, operations research and marketing [see, for example, Monahan and Sobel (1994), Monahan (1987), Schmalensee (1976), Case (1979, Ch. 4), Cooper and Nakanishi (1988)] and in economic dynamics as well [see e.g., Bischi et al (2000), Kopel et al (2000)].…”

Section: Discussionmentioning

confidence: 99%

A Competition Game With Knowledge Accumulation and Spillovers

Bischi

Lamantia

2004

Int. Game Theory Rev.

View full text Add to dashboard Cite

In this paper a repeated game is proposed to model competition among firms, with profit maximizing resource allocation. The proposed model differs from the usual competition models because efforts that players exert are not seen as sunk costs, but they accumulate to form a stock of knowledge that has a cost-reducing effect. In modelling knowledge accumulation, we also consider the (knowledge) spillovers, that is, involuntary leakage of useful technological information. The game with n boundedly rational agents is modelled by a 2n-dimensional discrete dynamical system, whose state variables are the R&D efforts and the stock of accumulated knowledge of each firm involved in the competition. The model is characterized by some counteracting forces: Efforts are costly but can increase future profits; immediate expenditures of each firm can have cost-reducing effects in the long run, since accumulated knowledge can decrease both own costs and competitors' ones, because of spillover effects. In the case of two homogeneous firms we prove the existence of a unique equilibrium and its stability. Starting from these analytic results, numerical simulations are performed in order to study the effects induced by heterogeneities between the players on stability and transient dynamics, as well as the influence of the main parameters on the basins of attraction.

show abstract

Section: Discussionmentioning

confidence: 99%

A Competition Game With Knowledge Accumulation and Spillovers

Bischi

Lamantia

2004

Int. Game Theory Rev.

View full text Add to dashboard Cite

show abstract

“…We will have the opportunity of coming back to this class of models in Chapter 8. See also Bultez and Naert (1975 In general, with s the number of lags, the number of usable observations is T-s, and the number of degrees of freedom of the error term is T-2-2s. A third difficulty with direct specification of lags is that the larger the s, the higher the chances that the explanatory variables structure becomes collinear.…”

Section: One Explanatory Variablementioning

confidence: 99%

“…A somewhat more general variant was studied by Bultez and Naert (1975). They demonstrated how, arter linearization, equation (8.32) can be estimated by a generalized least squares procedure proposed by McGuire, Farley, Lucas and Ring (1968).36 Bultez and Naert (1975) also show how equation (8.32) relates to Theil's (1969) 39 We should conclude these theoretical considerations by noting that (8.32) and (8.33) can be particularized by allowing parameters to vary across brands for some variables, and not for others. 40 Bultez and Naert (1973) applied the extended attraction model to the market of an inexpensive consumer durable product on the Scandinavian market, dominated by three firms (n = 3).…”

mentioning

confidence: 99%

Building Implementable Marketing Models

Naert¹,

Leeflang²

1978

Self Cite

118

View full text Add to dashboard Cite

“…3 e.g. Nakanishi/Cooper (1974) Naert/Bultez (1973) Bultez/Naert (1975) McGuire et al (1977) Lee ang/Reuyl (1984) Cooper/Nakanishi (1988) Abeele et al (1990) Cooper (1993) Chen et al (1994) Houston et al (1994). 4 e.g.…”

Section: Introductionmentioning

confidence: 99%

An artificial neural net attraction model (ANNAM) to analyze market share effects of marketing instruments

Hruschka

2001

Schmalenbach Bus Rev

View full text Add to dashboard Cite

Attraction models are very popular in marketing research for studying the e ects of marketing instruments on market shares. However, so far the marketing literature only considers attraction models with certain functional forms that exclude threshold or saturation e ects on attraction values. We c a n a c hieve greater exibility b y using the neural net based approach i n troduced here. This approach assesses brands' attraction values by means of a perceptron with one hidden layer. The approach uses log-ratio transformed market shares as dependent variables. Stochastic gradient descent followed by a quasiNewton method estimates parameters. For store-level data, neural net models perform better and imply a price response that is qualitatively di erent from the well-known multinomial logit attraction model. Price elasticities of neural net attraction models also lead to speci c managerial implications in terms of optimal prices.

show abstract

Consistent Sum-Constrained Models

Cited by 35 publications

References 0 publications

A Competition Game With Knowledge Accumulation and Spillovers

A Competition Game With Knowledge Accumulation and Spillovers

Building Implementable Marketing Models

An artificial neural net attraction model (ANNAM) to analyze market share effects of marketing instruments

Contact Info

Product

Resources

About